Remove barriers to fair competition — CTC
THE Competition and Tarif Commission (CTC) is urging policymakers to prioritise reforms that remove barriers to fair competition in domestic markets saying that anti-competitive practices result in inequality, which affects economic growth.
In her remarks at the World Competition Day commemorations held in Bulawayo yesterday, CTC director, Ms Ellen Ruparanganda, said economic inequality remains high manifesting in the form of noticeable rural-urban income disparities, skewed income distribution, unequal access to resources, opportunities, and markets, all of which stifle economic growth.
The commemorations were held under the theme “Competition Policy and Inequality” and Ms Ruparanganda said economic inequality should be addressed.
Economic inequality refers to the uneven distribution of income, wealth, consumption, and opportunities among different groups of people, which continues to hinder the growth of communities and nations.
“To policymakers, we note that Competition Policy and Law (CPL) complements other Government policies also aimed at addressing inequality,” said Ms Ruparanganda.
World Competition Day
“We, therefore, urge policymakers to prioritise reforms that remove barriers to fair competition in our domestic markets.
“As we commemorate World Competition Day, it is crucial to reflect on the broader socio-economic goals that competition policy seeks to achieve.”
She said while the commemoration’s primary focus is to promote efficient markets by curbing anti-competitive practices, there is a need to recognise its role as a powerful tool for addressing inequality.
Economic inequality both within and across nations, she said, is an enduring concern, further aggravated by recent global challenges such as the Covid-19 pandemic, climate change, and geopolitical tensions.
Ms Ruparanganda said small and medium enterprises (SMEs), which are often the backbone of economies, face significant challenges in competing with larger corporations, limiting their growth and contributions.
She also said vulnerable communities frequently bear the brunt of uncompetitive practices such as price-fixing and market allocation, restricting their access to affordable goods and services.
Employees in industries dominated by a few large players often experience suppressed wages and reduced bargaining power.
“Competition is not merely a business concept but is a fundamental driver of economic and social equity. Broadly, it is described as the rivalry among companies as they strive to secure the patronage of customers in a market,” said Ms Ruparanganda.
“With robust competition, companies are compelled to become more innovative/invent efficient ways of making their product, improve product quality and reduce prices or else they face losing their market to their competitors.”
In his keynote address, Industry and Commerce Deputy Minister, Raj Modi, said the Government is committed to fostering an environment where businesses can compete fairly, without engaging in anti-competitive practices that harm both consumers and other market players.
He said it has been noted that economic inequality has increased in many countries over the last few decades, with wealth and income increasingly concentrated in the hands of the wealthier segments of society.
“Competition law serves as a safeguard against monopolies, cartels, and other forms of anti-competitive behaviour,” said Deputy Minister Modi.
“It ensures that no single entity has undue control over a particular industry or market segment, thereby preventing the abuse of market power.
“By doing so, competition law promotes a level playing field for all businesses, regardless of their size or resources and thus, helping in reducing inequality.”
He added that competition policy encourages entrepreneurship by reducing barriers to entry for new entrants to enter the markets, thus stimulating economic growth and job creation. —chroncile
